Inflation

The War Comes for Your Wallet: Inflation Hits 3.8%, Highest Level in 3 Years

Prices are now rising faster than wages, just like during much of the Biden years. The war in Iran is largely to blame.

Eric Boehm | 5.12.2026 9:45 AM

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With oil and gas prices shooting higher, a key metric for measuring inflation hit its highest level in three years in April.

Consumer prices are up 3.8 percent over the past year after rising 0.6 percent in April, the Bureau of Labor Statistics reported on Tuesday morning.

Energy prices were largely responsible for the sharp increase, as they climbed by 3.8 percent in April (after jumping over 10 percent in March) and have increased by nearly 18 percent in the past year. Gasoline and fuel oil are up 28 percent and 54 percent in the past year, respectively.

It's not difficult to determine why.

The Strait of Hormuz, which........

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